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Article

28 Oct 2016

Author:
Karin Buhmann, Copenhagen Business School

Blog: Lost in translation or learning to walk? On CSR in ship recycling and textile sector supply chain management

Over the past weeks, news has emerged that Maersk, the world’s largest shipping company, which is based in Denmark, is having some of its container ships scrapped (cut up for materials to be recycled) under sub-standard conditions at beaches in India and Bangladesh. While Danish media have paid considerable attention to this and investors are asking critical questions of Maersk’s alignment between its CSR policies and practices, much less attention was paid to a case of severe critique of a Danish textile company that sourced from a supplier in the Rana Plaza building around the time of the building’s collapse. What do these two cases have in common? More than one might expect, judging from the way they have been treated by media and business association statements. This applies with regard to business practices as well as research...Press releases from business associations and the organization that lodged the complaint have highlighted the fact that the NCP did not pronounce the company accountable for the collapse..Notwithstanding that the NCP’s powers do not enable it to attribute legal liability and the fact that the NCP made its assessment on the basis of documentation that it has been presented with or was able to investigate, that part of the statement has been allowed to dominate. The critique and the lessons on the importance of due diligence that the statement holds for Danish (and other) companies has received much less attention...